|         X |           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) |
|---------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                                              | OF THE SECURITIES EXCHANGE ACT OF 1934                                                                       |

|   |                  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|   | THE SECURITIES EXCHANGE ACT OF 1934                                                                                                              |

| South Carolina                    |   | 57-1079460          |
|-----------------------------------|--------|---------------------|
| (State or other jurisdiction      |   | (I.R.S. Employer    |
| of incorporation or organization) |   | Identification No.) |

| Large accelerated filer  [   ]                                             |   | Accelerated filer      [   ] |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|
| Non-accelerated filer  [   ] (Do not check if a smaller reporting company) |   | Smaller reporting company  [ X ]                           |

----

| PART I - FINANCIAL INFORMATION                                                                                                                  | Page No. |
|-------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                            |     |
| Item 1.    Financial Statements (Unaudited)                                                                                      |     |
|                                                                                                                                            |     |
| Condensed Consolidated Balance Sheets – March 31, 2011 and December 31, 2010                                                              | 2        |
|                                                                                                                                            |     |
| Condensed Consolidated Statements of Income – Three months ended March 31, 2011 and 2010                                                  | 3        |
|                                                                                                                                            |     |
| Condensed Consolidated Statements Changes in Shareholders' Equity and Comprehensive Income (Loss) - Three months ended March 31, 2011 and 2010  |  4  |
|                                                                                                                                            |     |
| Condensed Consolidated Statements of Cash Flows - Three months ended March 31, 2011 and 2010                                                    | 6        |
|                                                                                                                                            |     |
|                 Notes to Condensed Consolidated Financial Statements | 6-12     |
|                                                                                                                                            |     |
| Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations                                 | 13-23    |
|                                                                                                                                            |     |
| Item 3.    Quantitative and Qualitative Disclosures About Market Risk                                                            | 24       |
|                                                                                                                                            |     |
| Item 4.    Controls and Procedures                                                                                               | 24       |
|                                                                                                                                            |     |
| PART II - OTHER INFORMATION                                                                                                                     |     |
|                                                                                                                                            |     |
| Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds                                                           | 25       |
|                                                                                                                                            |     |
| Item 6.    Exhibits                                                                                                              | 25       |
|                                                                                                                                            |     |
| Signatures                                                                                                                                      | 25       |
|                                                                                                                                            |     |
| Exhibit Index                                                                                                                                   | 26       |

----

| Item 1 - Financial Statements                             |   |        |             |   |         |   |
|-----------------------------------------------------------|--------|-------------|------------------|--------|--------------|--------|
|                                                      |   | March 31,   |             |   | December 31, |   |
|                                                      |   | 2011        |             |   | 2010         |   |
|                                                      |   | (Unaudited) |             |   |         |   |
| Assets                                                    |   |        |             |   |         |   |
| Cash and cash equivalents:                                |   |        |             |   |         |   |
| Cash and due from banks                                   |   | $           | 26,666,714       |   |         | $      | 20,061,687 |   |
| Federal funds sold                                        |   |        |  2,822,789  |   |         |   | - |   |
| Total cash and cash equivalents                           |   |        | 29,489,503       |   |         |   | 20,061,687 |   |
| Investment securities                                     |   |        |             |   |         |   |   |   |
| Available for sale                                        |   |        | 64,826,117       |   |         |   | 72,306,006 |   |
| Federal Home Loan Bank Stock, at cost                     |   |        | 4,105,700        |   |         |   | 4,105,700 |   |
| Loans held for sale                                       |   |        | -                |   |         |   | 417,000 |   |
| Loans, net of allowance of $8,813,927 and $9,512,831      |   |        | 322,032,918      |   |         |   | 326,935,892 |   |
| Premises and equipment, net                               |   |        | 22,205,696       |   |         |   | 22,447,556 |   |
| Other real estate owned                                   |   |        | 9,544,587        |   |         |   | 8,923,211 |   |
| Company owned life insurance                              |   |        | 11,618,288       |   |         |   | 11,519,785 |   |
| Other assets                                              |   |        |  11,123,943 |   |         |   | 11,609,432 |   |
| Total assets                                              |   | $           | 474,946,752      |   |         | $      | 478,326,269 |   |
|                                                      |   |        |             |   |         |   |   |   |
| Liabilities                                               |   |        |             |   |         |   |   |   |
| Deposits                                                  |   |        |             |   |         |   |   |   |
| Noninterest-bearing                                       |   | $           | 29,037,746       |   |         | $      | 28,855,563 |   |
| Interest-bearing                                          |   |        | 322,955,722      |   |         |   | 315,746,759 |   |
| Total deposits                                            |   |        | 351,993,468      |   |         |   | 344,602,322 |   |
| Securities sold under agreements to repurchase            |   |        | 6,579,661        |   |         |   | 3,963,399 |   |
| Federal Home Loan Bank Borrowings                         |   |        | 57,000,000       |   |         |   | 69,000,000 |   |
| Junior subordinated debentures                            |   |        | 10,310,000       |   |         |   | 10,310,000 |   |
| Other liabilities                                         |   |        | 3,082,321        |   |         |   | 4,672,532 |   |
| Total liabilities                                         |   |        | 428,965,450      |   |         |   | 432,548,253 |   |
| Shareholders’ Equity                                |   |        |             |   |         |   |   |   |
| Common stock (no par value; 20,000,000 shares authorized; |   |        |             |   |         |   |   |   |
| 4,790,957 shares outstanding at March 31, 2011 and        |   |        |             |   |         |   |   |   |
| 4,780,822 at December 31, 2010)                           |   |        | 54,288,980       |   |         |   | 54,257,867 |   |
| Accumulated deficit                                       |   |        | (6,619,380       | )      |         |   | (6,039,977 | ) |
| Accumulated other comprehensive loss                      |   |        | (1,688,298       | )      |         |   | (2,439,874 | ) |
| Total shareholders’ equity                          |   |        |  45,981,302 |   |         |   | 45,778,016 |   |
| Total liabilities and shareholders’ equity          |   | $           | 474,946,752      |   |         | $      | 478,326,269 |   |
|                                                      |   |        |             |   |         |   |   |   |

----

|                                                                                                    |   | For the Three Months Ended |           |
|---------------------------------------------------------------------------------------------------------|--------|----------------------------|----------------|
|                                                                                                    |   | March 31,                  |           |
|                                                                                                    |   | 2011                       |           |   | 2010 |   |
| Interest income                                                                                         |   |                       |           |   |   |   |
| Loans, including fees                                                                                   |   | $                          | 4,490,880      |   |   | $ | 4,774,123 |   |
| Taxable securities                                                                                      |   |                       | 389,173        |   |   |   | 608,225 |   |
|     Tax exempt securities                                                           |   |                       | 122,853        |   |   |   | 79,287 |   |
| Cash and federal funds sold                                                                             |   |                       | 6,947          |   |   |   | 13,719 |   |
| Total interest income                                                                                   |   |                       | 5,009,853      |   |   |   | 5,475,354 |   |
| Interest expense                                                                                        |   |                       |           |   |   |   |   |   |
| Deposits and borrowings                                                                                 |   |                       | 1,776,687      |   |   |   | 2,593,452 |   |
| Net interest income                                                                                     |   |                       | 3,233,166      |   |   |   | 2,881,902 |   |
| Provision for loan losses                                                                               |   |                       | 1,150,000      |   |   |   | 1,000,000 |   |
| Net interest income after provision for loan losses                                                     |   |                       | 2,083,166      |   |   |   | 1,881,902 |   |
| Noninterest income                                                                                      |   |                       |           |   |   |   |   |   |
| Service fees on deposit accounts                                                                        |   |                       | 334,226        |   |   |   | 258,187 |   |
|     Gain on sale of available for sale securities                                   |   |                       | 21,450         |   |   |   | 835,412 |   |
| Company owned life insurance earnings                                                                   |   |                       | 98,503         |   |   |   | 106,986 |   |
|     Other-than-temporary impairment on available for sale securities                |   |                       | (175,920       | ) |   |   | - |   |
| Other                                                                                                   |   |                       | 63,923         |   |   |   | 56,565 |   |
| Total noninterest income                                                                                |   |                       | 342,182        |   |   |   | 1,257,150 |   |
| Noninterest expenses                                                                                    |   |                       |           |   |   |   |   |   |
| Salaries and employment benefits                                                                        |   |                       | 1,699,479      |   |   |   | 1,663,654 |   |
| Occupancy                                                                                               |   |                       | 291,611        |   |   |   | 394,996 |   |
| Furniture and equipment                                                                                 |   |                       | 364,890        |   |   |   | 372,227 |   |
|     Software                                                                        |   |                       | 86,907         |   |   |   | 97,449 |   |
|     Insurance                                                                       |   |                       | 270,022        |   |   |   | 196,584 |   |
| Professional fees                                                                                       |   |                       | 257,637        |   |   |   | 185,740 |   |
| Telephone, postage, and supplies                                                                        |   |                       | 87,171         |   |   |   | 90,766 |   |
|     Gain on sale of other real estate owned                                         |   |                       | (2,327         | ) |   |   | (562,300 | ) |
|     Other real estate owned rental income, impairment provision, and other expenses |   |                       | 119,704        |   |   |   | (49,433 | ) |
| Other operating expenses                                                                                |   |                       | 253,451        |   |   |   | 229,685 |   |
| Total noninterest expenses                                                                              |   |                       | 3,428,545      |   |   |   | 2,619,368 |   |
| Income (loss) before income taxes                                                                       |   |                       | (1,003,197     | ) |   |   | 519,684 |   |
| Income tax expense (benefit)                                                                            |   |                       |  (423,794 | ) |   |   | 156,774 |   |
| Net income (loss)                                                                                       |   | $                          | (579,403       | ) |   | $ | 362,910 |   |
| Basic net income (loss) per common share                                                                |   | $                          | (.12           | ) |   | $ | .08 |   |
| Diluted net income per common share                                                                     |   | $                          | (.12           | ) |   | $ | .08 |   |
| Weighted average shares outstanding                                                                     |   |                       |           |   |   |   |   |   |
| Basic                                                                                                   |   |                       | 4,790,957      |   |   |   | 4,550,015 |   |
| Diluted                                                                                                 |   |                       | 4,790,957      |   |   |   | 4,550,015 |   |

----

|                                                                                                     |   |  Common Stock |      |   |   Accumulated |   |       | Accumulatedothercomprehensiveincome |   |   |           |
|----------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------------|--------|------------|-------------------------------------|--------|--------|----------------|
|                                                                                                     |   | Shares             |      |   | Amount                  |   |       | deficit                             |   |   | (loss)         |   |   | Total |
| Balance, December 31, 2009                                                                               |   |               | 4,542,023 |   |                    | $      | 53,583,283 |                                |   | $      | (6,108,846     | ) |   | $ | (2,393,645 | ) |   | $ | 45,080,792 |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Net income for the period                                                                                |   |               |      |   |                    |   |       |                                |   |   | 362,910        |   |   |   |   |   |   |   | 362,910 |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                                                                               |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains                                                                                 |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
|    on securities available for sale                                                       |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| net of taxes of $610,271                                                                                 |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   | 1,084,926 |   |   |   | 1,084,926 |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Less reclassification adjustment for                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| gains included in net income, net of                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| taxes of $300,748                                                                                        |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   | (534,664 | ) |   |   |  (534,664 | ) |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   | 913,172 |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Employee stock purchase plan                                                                             |   |               | 7,992     |   |                    |   | 27,493     |                                |   |   | -              |   |   |   | . -  |   |   |   | 27,493 |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Balance, March 31, 2010                                                                                  |   |               | 4,550,015 |   |                    | $      | 53,610,776 |                                |   | $      | (5,745,936     | ) |   | $ | (1,843,383 | ) |   | $ | 46,021,457 |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                                                                               |   |               | 4,780,822 |   |                    | $      | 54,257,867 |                                |   | $      | (6,039,977     | ) |   | $ | (2,439,874 | ) |   | $ | 45,778,016 |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Net loss for the period                                                                                  |   |               |      |   |                    |   |       |                                |   |   | (579,403       | ) |   |   |   |   |   |   | (579,403 | ) |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                                                                               |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains        on securities available for sale |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
|     net of taxes of $430,484                                                         |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   | 765,304 |   |   |   | 765,304 |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Less reclassification adjustment for                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| gains included in net income, net of                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| taxes of $7,722                                                                                          |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   | (13,728 | ) |   |   | (13,728 | ) |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   | 172,173 |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Employee stock purchase plan                                                                             |   |               | 10,135    |   |                    |   | 31,113     |                                |   |   | . -  |   |   |   | . - . |   |   |   | 31,113 |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |
| Balance, March 31, 2011                                                                                  |   |               | 4,790,957 |   |                    | $      | 54,288,980 |                                |   | $      | (6,619,380     | ) |   | $ | (1,688,298 | ) |   | $ | 45,981,302 |   |
|                                                                                                     |   |               |      |   |                    |   |       |                                |   |   |           |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                |   | For the three months ended |       |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|
|                                                                                                                                |   | March 31,                  |       |
|                                                                                                                                |   | 2011                       |       |   | 2010 |   |
| Operating activities                                                                                                                |   |                       |       |   |   |   |
| Net income (loss)                                                                                                                   |   | $                          | (579,403   | ) |   | $ | 362,910 |   |
| Adjustments to reconcile net income (loss) to net                                                                                   |   |                       |       |   |   |   |   |   |
| cash provided by (used for) operating activities                                                                                    |   |                       |       |   |   |   |   |   |
| (Increase) decrease in deferred income taxes                                                                                        |   |                       | (386,417   | ) |   |   | 418,933 |   |
| Provision for loan losses                                                                                                           |   |                       | 1,150,000  |   |   |   | 1,000,000 |   |
| Depreciation and amortization                                                                                                       |   |                       | 252,723    |   |   |   | 272,172 |   |
| Discount accretion and premium amortization                                                                                         |   |                       | 113,892    |   |   |   | 101,067 |   |
| Gain on sale of securities                                                                                                          |   |                       | (21,450    | ) |   |   | (835,412 | ) |
|             Other-than-temporary impairment on available for sale securities |   |                       | 175,920    |   |   |   | - |   |
| Gain on sale of other real estate owned                                                                                             |   |                       | (2,327     | ) |   |   | (562,300 | ) |
|             Deferred gain on sale of other real estate owned                 |   |                       | (48,237    | ) |   |   | - |   |
|         Impairment charges on other real estate owned                                       |   |                       | 13,213     |   |   |   | - |   |
| Originations of loans held for sale                                                                                                 |   |                       | (1,423,575 | ) |   |   | (4,328,878 | ) |
| Proceeds from sales of loans held for sale                                                                                          |   |                       | 1,840,575  |   |   |   | 4,198,957 |   |
| Increase in value of Company owned life insurance                                                                                   |   |                       | (98,503    | ) |   |   | (106,986 | ) |
| Decrease in other assets                                                                                                            |   |                       | 395,568    |   |   |   | 231,071 |   |
| Decrease in other liabilities                                                                                                       |   |                       | (1,590,211 | ) |   |   | (2,727,996 | ) |
|                                                                                                                                |   |                       |       |   |   |   |   |   |
| Net cash used for operating activities                                                                                              |   |                       | (208,232   | ) |   |   | (1,976,462 | ) |
|                                                                                                                                |   |                       |       |   |   |   |   |   |
| Investing activities                                                                                                                |   |                       |       |   |   |   |   |   |
| Purchases of investment securities available-for-sale                                                                               |   |                       | -          |   |   |   | (55,725,990 | ) |
|     Sales, calls, and maturities of investment securities available-for-sale                                    |   |                       | 8,439,441  |   |   |   | 37,543,797 |   |
|     Increase in net proceeds receivable from investment transactions                                            |   |                       | -          |   |   |   | (5,833,657 | ) |
|     Purchases of premises and equipment                                                                         |   |                       | (10,863    | ) |   |   | (802,526 | ) |
| Proceeds from sales of other real estate owned                                                                                      |   |                       | 530,535    |   |   |   | 1,857,887 |   |
| Proceeds from liquidation of Company owned life insurance                                                                           |   |                       | -          |   |   |   | 8,129,967 |   |
| Capital expenditures related to other real estate owned                                                                             |   |                       | (28,870    | ) |   |   | - |   |
| Net decrease in loans                                                                                                               |   |                       | 2,667,284  |   |   |   | 9,327,738 |   |
|                                                                                                                                |   |                       |       |   |   |   |   |   |
| Net cash provided by (used for) investing activities                                                                                |   |                       | 11,597,527 |   |   |   | (5,502,784 | ) |
|                                                                                                                                |   |                       |       |   |   |   |   |   |
| Financing activities                                                                                                                |   |                       |       |   |   |   |   |   |
| Decrease in borrowings                                                                                                              |   |                       | (9,383,738 | ) |   |   | (5,202,406 | ) |
| Net proceeds from issuances of stock                                                                                                |   |                       | 31,113     |   |   |   | 27,943 |   |
| Net increase (decrease) in deposits                                                                                                 |   |                       | 7,391,146  |   |   |   | (10,383,735 | ) |
|                                                                                                                                |   |                       |       |   |   |   |   |   |
| Net cash used for financing activities                                                                                              |   |                       | (1,961,479 | ) |   |   | (15,558,648 | ) |
|                                                                                                                                |   |                       |       |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                                                                    |   |                       | 9,427,816  |   |   |   | (23,037,894 | ) |
|                                                                                                                                |   |                       |       |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                                                                      |   |                       | 20,061,687 |   |   |   | 40,898,730 |   |
|                                                                                                                                |   |                       |       |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                                                            |   | $                          | 29,489,503 |   |   | $ | 17,860,836 |   |
|                                                                                                                                |   |                       |       |   |   |   |   |   |
| Cash paid during the year for:                                                                                                      |   |                       |       |   |   |   |   |   |
| Income taxes                                                                                                                        |   | $                          | -          |   |   | $ | 28,367 |   |
| Interest                                                                                                                            |   | $                          | 1,633,489  |   |   | $ | 2,218,333 |   |

----

----

----

|                                                                                   |   |  March 31, 2011 |       |
|----------------------------------------------------------------------------------------|--------|----------------------|------------|
|                                                                                   |   | Amortized            |       |   | Gross Unrealized |   |   | Estimated |   |
|                                                                                   |   | Cost                 |       |   | Gains |   |   | Losses |   |   | Fair value |   |
| Available for sale                                                                     |   |                 |       |   |   |   |   |   |   |   |   |   |
| Mortgage backed                                                                        |   |                 |       |   |   |   |   |   |   |   |   |   |
|          Government sponsored enterprises |   | $                    | 49,066,094 |   |   | $ | 226,265 |   |   | $ | 697,726 |   |   | $ | 48,594,633 |   |
|          Other                            |   |                 | 1,790,580  |   |   |   | 39,285 |   |   |   | - |   |   |   | 1,829,865 |   |
| Municipal securities                                                                   |   |                 | 12,273,698 |   |   |   | 210,317 |   |   |   | 77,290 |   |   |   | 12,406,725 |   |
| Other                                                                                  |   |                 | 4,485,665  |   |   |   | .   - |   |   |   | 2,490,771 |   |   |   | 1,994,894 |   |
| Total                                                                                  |   | $                    | 67,616,037 |   |   | $ | 475,867 |   |   | $ | 3,265,787 |   |   | $ | 64,826,117 |   |
|                                                                                   |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                         |   | December 31, 2010 |       |
|----------------------------------------------------------------------------------------------|--------|-------------------|------------|
|                                                                                         |   | Amortized         |       |   | Gross Unrealized |   |   | Estimated |   |
| Available for sale                                                                           |   | Cost              |       |   | Gains |   |   | Losses |   |   | Fair value |   |
| Mortgage backed                                                                              |   |              |       |   |   |   |   |   |   |   |   |   |
|           Government sponsored enterprises |   | $                 | 57,531,723 |   |   | $ | 137,206 |   |   | $ | 985,935 |   |   | $ | 56,682,994 |   |
|           Other                            |   |              | 1,875,479  |   |   |   | 4,992 |   |   |   | - |   |   |   | 1,880,471 |   |
| Municipal securities                                                                         |   |              | 12,257,174 |   |   |   | 90,523 |   |   |   | 259,908 |   |   |   | 12,087,789 |   |
| Other                                                                                        |   |              | 4,659,464  |   |   |   | - . |   |   |   | 3,004,712 |   |   |   | 1,654,752 |   |
| Total                                                                                        |   | $                 | 76,323,840 |   |   | $ | 232,721 |   |   | $ | 4,250,555 |   |   | $ | 72,306,006 |   |

|                 |   | March 31, 2011      |          |
|----------------------|--------|---------------------|---------------|
|                 |   | Less than           |          |   | Twelve months |   |   |   |   |
|                 |   |  twelve months |          |   | or more |   |   |  Total |   |
|                 |   |                |          |   | Unrealized |   |   |   |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                 |   | Fair value          |          |   | losses  |   |   | Fair value |   |   | losses  |   |   | Fair value |   |   | losses  |   |
| Mortgage backed      |   | $                   | 32,187,932    |   |   | $ | 697,726 |   |   | $ | - |   |   | $ | - |   |   | $ | 32,187,932 |   |   | $ | 697,726 |   |
| Municipal securities |   |                | 2,182,201     |   |   |   | 46,746 |   |   |   | 471,466 |   |   |   | 30,544 |   |   |   | 2,653,667 |   |   |   | 77,290 |   |
| Other                |   |                |  -  |   |   |   | - |   |   |   | 1,034,893 |   |   |   | 2,490,771 |   |   |   |  1,034,893 |   |   |   | 2,490,771 |   |
|                 |   | $                   | 34,370,133    |   |   | $ | 744,472 |   |   | $ | 1,506,359 |   |   | $ | 2,521,315 |   |   | $ | 35,876,492 |   |   | $ | 3,265,787 |   |
| Total                |   |                |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                 |   |  December 31, 2010 |          |
|----------------------|--------|-------------------------|---------------|
|                 |   | Less than               |          |   | Twelve months |   |   |   |   |
|                 |   |  twelve months     |          |   | or more |   |   |  Total  |   |
|                 |   |                    |          |   | Unrealized |   |   |   |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                 |   | Fair value              |          |   |  losses |   |   | Fair value |   |   | losses |   |   | Fair value |   |   | losses  |   |
| Mortgage backed      |   | $                       | 38,868,650    |   |   | $ | 904,061 |   |   | $ | 1,056,758 |   |   | $ | 81,874 |   |   | $ | 39,925,408 |   |   | $ | 985,935 |   |
| Municipal securities |   |                    | 6,782,898     |   |   |   | 210,605 |   |   |   | 446,500 |   |   |   | 49,303 |   |   |   | 7,229,398 |   |   |   | 259,908 |   |
| Other                |   |                    |  -  |   |   |   |  - |   |   |   | 694,752 |   |   |   | 3,004,712 |   |   |   | 694,752 |   |   |   | 3,004,712 |   |
|                 |   |                    |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                |   | $                       | 45,651,548    |   |   | $ | 1,114,666 |   |   | $ | 2,198,010 |   |   | $ | 3,135,889 |   |   | $ | 47,849,558 |   |   | $ | 4,250,555 |   |

----

|                                                       |   | Amortized |       |   | Fair   |   |
|------------------------------------------------------------|--------|-----------|------------|--------|--------|--------|
|                                                       |   | Cost      |       |   | Value  |   |
| Due after five but within ten years                        |   | $         | 2,846,442  |   |   | $      | 2,937,836 |   |
| Due after ten years                                        |   |      | 13,762,921 |   |   |   | 11,313,783 |   |
| Mortgage backed                                            |   |      | 50,856,674 |   |   |   | 50,424,498 |   |
|     Equity securities with no maturity |   |      | 150,000    |   |   |   | 150,000 |   |
| Total investment securities available-for-sale             |   | $         | 67,616,037 |   |   | $      | 64,826,117 |   |

|         |   | Period ending March 31, |      |
|--------------|--------|-------------------------|-----------|
|         |   |  2010              |      |   | 2009 |   |
| Proceeds     |   | $                       | 5,769,799 |   |   | $ | 35,542,672 |   |
| Gross Gains  |   |                    | 61,337    |   |   |   | 835,412 |   |
| Gross Losses |   |                    | 39,887    |   |   |   | - |   |

----

| (Dollars in thousands)                |   | March 31,        |    |   | December 31,     |
|---------------------------------------|--------|------------------|---------|--------|------------------|
|                                  |   |  2011  |    |   |  2010  |
| Real estate secured loans:            |   |             |    |   |             |   |
| Residential 1-4 Family                |   | $                | 161,244 |   |             | $ | 156,766 |   |
| Multifamily                           |   |             | 5,447   |   |             |   | 6,657 |   |
| Commercial                            |   |             | 86,550  |   |             |   | 92,481 |   |
| Construction and land development     |   |             | 50,986  |   |             |   | 51,366 |   |
|  Total real estate secured loans |   |             | 304,227 |   |             |   | 307,270 |   |
|  Commercial and industrial       |   |             | 23,600  |   |             |   | 26,242 |   |
|  Consumer                        |   |             | 2,468   |   |             |   | 2,372 |   |
|  Other                           |   |             | 552     |   |             |   | 565 |   |
|  Total gross loans               |   |             | 330,847 |   |             |   | 336,449 |   |
| Allowance for loan losses             |   |             | (8,814  | )      |             |   | (9,513 | ) |
|                                  |   | $                | 322,033 |   |             | $ | 326,936 |   |

| Credit Grade | Description                                                                                                                                                                          |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1            | Loans secured by cash collateral.                                                                                                                                                    |
| 2            | Loans secured by readily marketable collateral.                                                                                                                                      |
| 3            | Top quality loans with excellent repayment sources and no significant identifiable risk of collection.                                                                               |
| 4            | Acceptable loans with adequate repayment sources and little identifiable risk of collection.                                                                                         |
| 5            | Acceptable loans with signs of weakness as to repayment or collateral, but with mitigating factors that minimize the risk of loss.                                                   |
| 6            | Watch List or Special Mention loans with underwriting tolerances and/or exceptions with no mitigating factors that may, due to economic or other factors, increase the risk of loss. |
| 7            | Classified substandard loans inadequately protected by the paying capacity or net worth of the obligor, or of the collateral. Weaknesses jeopardize the liquidation of the debt.     |
| 8            | Classified doubtful loans in which collection or liquidation in full is highly improbable.                                                                                           |
| 9            | Classified loss loans that are uncollectible and of such little value that continuance as an asset is not warranted.                                                                 |

----

| Credit risk Profile by Creditworthiness Category |   |
|--------------------------------------------------|--------|
| As of March 31, 2011 and December 31, 2010       |   |
|                                             |   |   |                                                                 Real Estate Secured  |   |
|                                             |   |   | Residential 1-4 Family |   |   | Multi Family |   |   | Commercial |   |   | Construction and Land   Development |   |
|                                             |   |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| Grade                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             | 1      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                             | 2      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                             | 3      |   |   |   | 38,518 |   |   |   | 33,374 |   |   |   | - |   |   |   | - |   |   |   | 5,480 |   |   |   | 5,770 |   |   |   | 7,172 |   |   |   | 5,899 |   |
|                                             | 4      |   |   |   | 65,360 |   |   |   | 67,724 |   |   |   | 738 |   |   |   | 745 |   |   |   | 26,716 |   |   |   | 28,268 |   |   |   | 12,474 |   |   |   | 13,257 |   |
|                                             | 5      |   |   |   | 45,563 |   |   |   | 41,960 |   |   |   | 3,008 |   |   |   | 3,030 |   |   |   | 29,228 |   |   |   | 38,308 |   |   |   | 17,689 |   |   |   | 17,013 |   |
|                                             | 6      |   |   |   | 2,511 |   |   |   | 3,585 |   |   |   | - |   |   |   | 396 |   |   |   | 10,395 |   |   |   | 7,857 |   |   |   | 481 |   |   |   | 701 |   |
|                                             | 7      |   |   |   | 7,731 |   |   |   | 7,978 |   |   |   | 1,701 |   |   |   | 1,315 |   |   |   | 12,852 |   |   |   | 10,272 |   |   |   | 11,560 |   |   |   | 12,674 |   |
|                                             | 8      |   |   |   | 1,561 |   |   |   | 2,145 |   |   |   | - |   |   |   | 1,171 |   |   |   | 1,879 |   |   |   | 2,006 |   |   |   | 1,610 |   |   |   | 1,822 |   |
|                                             | 9      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                            |   |   | $ | 161,244 |   |   | $ | 156,766 |   |   | $ | 5,447 |   |   | $ | 6,657 |   |   | $ | 86,550 |   |   | $ | 92,481 |   |   | $ | 50,986 |   |   | $ | 51,366 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   | Non-Real Estate Secured |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   | Commercial |   |   | Consumer |   |   | Other |   |   | Total |   |
|                                             |   |   |   |   | 2011 |   |   |   | 2010 |   |   |   | 2011 |   |   |   | 2010 |   |   |   | 2011 |   |   |   | 2010 |   |   |   | 2011 |   |   |   | 2010 |   |
| Grade                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             | 1      |   |   | $ | 298 |   |   | $ | 1,416 |   |   | $ | 48 |   |   | $ | 52 |   |   | $ | - |   |   | $ | - |   |   | $ | 346 |   |   | $ | 1,468 |   |
|                                             | 2      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                             | 3      |   |   |   | 1,941 |   |   |   | 1,959 |   |   |   | 242 |   |   |   | 293 |   |   |   | 202 |   |   |   | 204 |   |   |   | 53,555 |   |   |   | 47,499 |   |
|                                             | 4      |   |   |   | 4,861 |   |   |   | 4,865 |   |   |   | 455 |   |   |   | 334 |   |   |   | 290 |   |   |   | 301 |   |   |   | 110,894 |   |   |   | 115,494 |   |
|                                             | 5      |   |   |   | 11,185 |   |   |   | 14,964 |   |   |   | 1,415 |   |   |   | 1,542 |   |   |   | 60 |   |   |   | 60 |   |   |   | 108,148 |   |   |   | 116,877 |   |
|                                             | 6      |   |   |   | 3,292 |   |   |   | 971 |   |   |   | 15 |   |   |   | 23 |   |   |   | - |   |   |   | - |   |   |   | 16,694 |   |   |   | 13,533 |   |
|                                             | 7      |   |   |   | 2,023 |   |   |   | 2,067 |   |   |   | 293 |   |   |   | 128 |   |   |   | - |   |   |   | - |   |   |   | 36,160 |   |   |   | 34,434 |   |
|                                             | 8      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,050 |   |   |   | 7,144 |   |
|                                             | 9      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                            |   |   | $ | 23,600 |   |   | $ | 26,242 |   |   | $ | 2,468 |   |   | $ | 2,372 |   |   | $ | 552 |   |   | $ | 565 |   |   | $ | 330,847 |   |   | $ | 336,449 |   |

|            |   | Residential – Prime |    |   | Residential – Subprime (1) |   |    | Residential Total |   |
|-----------------|--------|---------------------------|---------|--------|----------------------------------|--------|---------|-------------------|--------|
|            |   | 2011                      |    |   | 2010                             |   |    | 2011              |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| Grade           |   |                      |    |   |                             |   |    |              |   |   |   |   |   |   |   |   |   |   |
| Pass            |   | $                         | 145,976 |   |                             | $      | 139,572 |              |   | $ | 3,465 |   |   | $ | 3,486 |   |   | $ | 149,441 |   |   | $ | 143,058 |   |
| Special Mention |   |                      | 2,511   |   |                             |   | 3,585   |              |   |   | - |   |   |   | - |   |   |   | 2,511 |   |   |   | 3,585 |   |
| Substandard     |   |                      | 6,401   |   |                             |   | 6,480   |              |   |   | 1,330 |   |   |   | 1,498 |   |   |   | 7,731 |   |   |   | 7,978 |   |
| Doubtful        |   |                      | 1,007   |   |                             |   | 1,592   |              |   |   | 554 |   |   |   | 553 |   |   |   | 1,561 |   |   |   | 2,145 |   |
| Total           |   | $                         | 155,895 |   |                             | $      | 151,229 |              |   | $ | 5,349 |   |   | $ | 5,537 |   |   | $ | 161,244 |   |   | $ | 156,766 |   |

----

| Past Due LoansFor the Periods Ended March 31, 2011 and December 31, 2010 |   |
|--------------------------------------------------------------------------|--------|
| March 31, 2011                                            |   | 30-59 Days Past   Due |   |   | 60-89 Days Past    Due |   |   | Greater Than 90  Days |   |   |  Total Past  Due |   |   |    Current |   |   | Total Loans Receivable |   |   | Recorded Investment > 90 Days and  Accruing |   |
| Real Estate   Secured                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 Family     Residential                                |   | $ | 7,414 |   |   | $ | 1,273 |   |   | $ | 2,605 |   |   | $ | 11,292 |   |   | $ | 149,952 |   |   | $ | 161,244 |   |   |   | - |   |
| Multi Family    Residential                               |   |   | 397 |   |   |   | - |   |   |   | - |   |   |   | 397 |   |   |   | 5,050 |   |   |   | 5,447 |   |   |   | - |   |
| Commercial Real    Estate                                      |   |   | 4,289 |   |   |   | 178 |   |   |   | 5,627 |   |   |   | 10,094 |   |   |   | 76,456 |   |   |   | 86,550 |   |   |   | - |   |
| Construction    and Land                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
|     Development                                      |   |   | 2,082 |   |   |   | 5 |   |   |   | 1,863 |   |   |   | 3,950 |   |   |   | 47,036 |   |   |   | 50,986 |   |   |   | - |   |
| Non Real Estate Secured                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Commercial    and Industrial                                   |   |   | 275 |   |   |   | 393 |   |   |   | 96 |   |   |   | 764 |   |   |   | 22,836 |   |   |   | 23,600 |   |   |   | - |   |
| Consumer and   Other                                                |   |   | 61 |   |   |   | 39 |   |   |   | 10 |   |   |   | 110 |   |   |   | 2,910 |   |   |   | 3,020 |   |   |   | - |   |
|          Total              |   | $ | 14,518 |   |   | $ | 1,888 |   |   | $ | 10,201 |   |   | $ | 26,608 |   |   | $ | 304,240 |   |   | $ | 330,847 |   |   | $ | - |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010                                         |   | 30-59 Days Past   Due |   |   | 60-89 Days Past    Due |   |   | Greater Than 90  Days |   |   |  Total Past  Due |   |   |    Current |   |   | Total Loans Receivable |   |   | Recorded Investment > 90 Days and  Accruing |   |
| Real Estate   Secured                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 Family    Residential                                      |   | $ | 4,601 |   |   | $ | 1,018 |   |   | $ | 3,554 |   |   | $ | 9,173 |   |   | $ | 147,593 |   |   | $ | 156,766 |   |   | $ | 44 |   |
| Multi    Family Residential                                    |   |   | - |   |   |   | - |   |   |   | 1,171 |   |   |   | 1,171 |   |   |   | 5,486 |   |   |   | 6,657 |   |   |   | - |   |
| Commercial Real    Estate                                      |   |   | 4,815 |   |   |   | 1,437 |   |   |   | 4,908 |   |   |   | 11,160 |   |   |   | 81,321 |   |   |   | 92,481 |   |   |   | - |   |
| Construction    and Land                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
|     Development                                      |   |   | 202 |   |   |   | 182 |   |   |   | 1,899 |   |   |   | 2,283 |   |   |   | 49,083 |   |   |   | 51,366 |   |   |   | - |   |
| Non Real    Estate Secured                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Commercial    and Industrial                                   |   |   | 612 |   |   |   | 157 |   |   |   | 526 |   |   |   | 1,295 |   |   |   | 24,947 |   |   |   | 26,242 |   |   |   | - |   |
| Consumer and    Other                                          |   |   | 45 |   |   |   | 40 |   |   |   | 9 |   |   |   |  94 |   |   |   | 2,843 |   |   |   | 2,937 |   |   |   | - |   |
|          Total              |   | $ | 10,275 |   |   | $ | 2,834 |   |   | $ | 12,067 |   |   | $ | 25,176 |   |   | $ | 311,273 |   |   | $ | 336,449 |   |   | $ | 44 |   |

----

|                                                  |   | March 31, |     |   | December 31, |
|-------------------------------------------------------|--------|-----------|----------|--------|--------------|
|                                                  |   | 2011      |     |   | 2010         |
| 1-4 Family Residential Prime                          |   | $         | 2,736    |   |         | $ | 3,674 |   |
| 1-4 Family Residential Subprime (1)                   |   |      | 1,167    |   |         |   | 1,175 |   |
| Multi Family Residential                              |   |      | -        |   |         |   | 1,171 |   |
| Commercial Real Estate                                |   |      | 9,440    |   |         |   | 8,771 |   |
| Construction and Land Development                     |   |      | 3,665    |   |         |   | 3,890 |   |
| Commercial and Industrial                             |   |      | 484      |   |         |   | 923 |   |
| Consumer and Other                                    |   |      |  10 |   |         |   | 9 |   |
|         Total |   | $         | 17,502   |   |         | $ | 19,613 |   |

----

| (Dollars in thousands)     |   | March 31, |   |   | March 31 |   |
|----------------------------|--------|-----------|--------|--------|----------|--------|
|                       |   | 2011      |   |   | 2010     |   |
| Balance, beginning of year |   | $         | 9,513  |   |     | $      | 10,042 |   |
| Provision for loan losses  |   |      | 1,150  |   |     |   | 1,000 |   |
| Net charge offs            |   |      | (1,849 | )      |     |   | (719 | ) |
| Balance, end of quarter    |   | $         | 8,814  |   |     | $      | 10,323 |   |

|                                |   | For the Quarter Ended March 31, 2011 |   |
|-------------------------------------|--------|--------------------------------------|--------|
|                                |   | Beginning  Balance              |   |   | Charge Offs |   |   | Recoveries |   |   | Provisions |   |   | Ending Allowance for Loan Losses |   |
|                                |   |                                 |   |   |   |   |   |   |   |   |   |   |   | General  Reserves |   |   | Specific  Reserves |   |   | Total |   |
| Real Estate Secured                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 Family Residential              |   | $                                    | 2,532  |   |   | $ | 315 |   |   | $ | 41 |   |   | $ | 412 |   |   | $ | 2,007 |   |   | $ | 663 |   |   | $ | 2,670 |   |
| Multi Family Residential  |   |                                 | 358    |   |   |   | 402 |   |   |   | - |   |   |   | 185 |   |   |   | 52 |   |   |   | 89 |   |   |   | 141 |   |
| Commercial Real Estate         |   |                                 | 1,263  |   |   |   | 231 |   |   |   | - |   |   |   | 313 |   |   |   | 1,126 |   |   |   | 219 |   |   |   | 1,345 |   |
| Construction and Land          |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Development |   |                                 | 2,972  |   |   |   | 105 |   |   |   | 8 |   |   |   | (840 | ) |   |   | 1,436 |   |   |   | 599 |   |   |   | 2,035 |   |
| Non Real Estate Secured        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and Industrial      |   |                                 | 619    |   |   |   | 837 |   |   |   | - |   |   |   | 1,063 |   |   |   | 845 |   |   |   | - |   |   |   | 845 |   |
| Consumer and Other             |   |                                 | 124    |   |   |   | 9 |   |   |   | 1 |   |   |   | 36 |   |   |   | 152 |   |   |   | - |   |   |   | 152 |   |
| Other                               |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other General Reserves         |   |                                 | 1,345  |   |   |   | - |   |   |   | - |   |   |   | (16 | ) |   |   | 1,329 |   |   |   | - |   |   |   | 1,329 |   |
| Unallocated                         |   |                                 | 300    |   |   |   | - |   |   |   | - |   |   |   | (3 | ) |   |   | 297 |   |   |   | - |   |   |   | 297 |   |
| Total                               |   | $                                    | 9,513  |   |   | $ | 1,899 |   |   | $ | 50 |   |   | $ | 1,150 |   |   | $ | 7,244 |   |   | $ | 1,570 |   |   | $ | 8,814 |   |

|                                |   | For the Year Ended December 31, 2010 |   |
|-------------------------------------|--------|--------------------------------------|--------|
|                                |   | Beginning  Balance              |   |   | Charge Offs |   |   | Recoveries |   |   | Provisions |   |   | Ending Allowance for Loan Losses |   |
|                                |   |                                 |   |   |   |   |   |   |   |   |   |   |   | General  Reserves |   |   | Specific  Reserves |   |   | Total |   |
| Real Estate Secured                 |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 Family Residential              |   | $                                    | 2,163  |   |   | $ | 1,327 |   |   | $ | 22 |   |   | $ | 1,674 |   |   | $ | 1,723 |   |   | $ | 809 |   |   | $ | 2,532 |   |
| Multi Family Residential            |   |                                 | 64     |   |   |   | 50 |   |   |   | - |   |   |   | 344 |   |   |   | 69 |   |   |   | 289 |   |   |   | 358 |   |
| Commercial Real Estate              |   |                                 | 2,454  |   |   |   | 805 |   |   |   | 256 |   |   |   | (642 | ) |   |   | 737 |   |   |   | 526 |   |   |   | 1,263 |   |
| Construction and Land               |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Development |   |                                 | 2,413  |   |   |   | 2,292 |   |   |   | 33 |   |   |   | 2,818 |   |   |   | 2,333 |   |   |   | 639 |   |   |   | 2,972 |   |
| Non Real Estate Secured             |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and Industrial           |   |                                 | 683    |   |   |   | 63 |   |   |   | 23 |   |   |   | (24 | ) |   |   | 619 |   |   |   | - |   |   |   | 619 |   |
| Consumer and Other                  |   |                                 | 106    |   |   |   | 132 |   |   |   | 5 |   |   |   | 145 |   |   |   | 124 |   |   |   | - |   |   |   | 124 |   |
| Other                               |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other General Reserves              |   |                                 | 1,350  |   |   |   | - |   |   |   | - |   |   |   | (5 | ) |   |   | 1,345 |   |   |   | - |   |   |   | 1,345 |   |
| Unallocated                         |   |                                 | 809    |   |   |   | - |   |   |   | - |   |   |   | (509 | ) |   |   | 300 |   |   |   | - |   |   |   | 300 |   |
| Total                               |   | $                                    | 10,042 |   |   | $ | 4,669 |   |   | $ | 339 |   |   | $ | 3,801 |   |   | $ | 7,250 |   |   | $ | 2,263 |   |   | $ | 9,513 |   |

----

| Loans Receivable:                                                                                                                                                                                            |   | As of March 31, 2011                        |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                                                                                                                                         |   | Individually evaluated for  impairment |   |   | Collectively evaluated for  impairment |   |   | Total |   |
| Real Estate Secured                                                                                                                                                                                          |   |                                        |   |   |   |   |   |   |   |
| 1-4 Family Residential                                                                                                                                                                                       |   | $                                           | 4,039  |   |   | $ | 157,205 |   |   | $ | 161,244 |   |
| Multi Family Residential                                                                                                                                                                                     |   |                                        | 817    |   |   |   | 4,630 |   |   |   | 5,447 |   |
| Commercial Real Estate                                                                                                                                                                                       |   |                                        | 9,440  |   |   |   | 77,110 |   |   |   | 86,550 |   |
| Construction and Land                                                                                                                                                                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |
|     Development                                                                                                                                                                          |   |                                        | 4,048  |   |   |   | 46,938 |   |   |   | 50,986 |   |
| Non Real Estate Secured                                                                                                                                                                                      |   |                                        |   |   |   |   |   |   |   |   |   |   |
| Commercial and Industrial                                                                                                                                                                                    |   |                                        | -      |   |   |   | 23,600 |   |   |   | 23,600 |   |
| Consumer and Other                                                                                                                                                                                           |   |                                        | -      |   |   |   | 3,020 |   |   |   | 3,020 |   |
|                                  Total: |   | $                                           | 18,344 |   |   | $ | 312,503 |   |   | $ | 330,847 |   |

| Loans Receivable:                                                                                                                                                                                            |   | As of December 31, 2010                     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                                                                                                                                         |   | Individually evaluated for  impairment |   |   | Collectively evaluated for  impairment |   |   | Total |   |
| Real Estate Secured                                                                                                                                                                                          |   |                                        |   |   |   |   |   |   |   |
| 1-4 Family Residential                                                                                                                                                                                       |   | $                                           | 4,678  |   |   | $ | 152,088 |   |   | $ | 156,766 |   |
| Multi Family Residential                                                                                                                                                                                     |   |                                        | 1,993  |   |   |   | 4,664 |   |   |   | 6,657 |   |
| Commercial Real Estate                                                                                                                                                                                       |   |                                        | 8,262  |   |   |   | 84,219 |   |   |   | 92,481 |   |
| Construction and Land                                                                                                                                                                                        |   |                                        |   |   |   |   |   |   |   |   |   |   |
|     Development                                                                                                                                                                          |   |                                        | 4,270  |   |   |   | 47,096 |   |   |   | 51,366 |   |
| Non Real Estate Secured                                                                                                                                                                                      |   |                                        |   |   |   |   |   |   |   |   |   |   |
| Commercial and Industrial                                                                                                                                                                                    |   |                                        | -      |   |   |   | 26,242 |   |   |   | 26,242 |   |
| Consumer and Other                                                                                                                                                                                           |   |                                        | -      |   |   |   | 2,937 |   |   |   | 2,937 |   |
|                                  Total: |   | $                                           | 19,203 |   |   | $ | 317,246 |   |   | $ | 336,449 |   |

----

| Impaired Loans                                                                 |   |
|--------------------------------------------------------------------------------|--------|
| For the Quarter Ended March 31, 2011                                           |   |
|                                                                           |   | Recorded Investment  (1) |   |   | Impaired Principal  Balance |   |   | Related  Allowance |   |   | Life to Date Charge offs |   |   | Average Recorded Investment |   |   | Interest Income Recognized |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With no related allowance recorded:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     1-4 Residential Prime                                  |   | $ | 1,219 |   |   | $ | 1,219 |   |   | $ | - |   |   | $ | 367 |   |   | $ | 1,216 |   |   | $ | - |   |
|     1-4 Residential Subprime (2)                           |   |   | 313 |   |   |   | 313 |   |   |   | - |   |   |   | 241 |   |   |   | 313 |   |   |   | - |   |
|     Multi Family Residential                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Commercial Real Estate                                 |   |   | 6,273 |   |   |   | 6,273 |   |   |   | - |   |   |   | 1,018 |   |   |   | 6,399 |   |   |   | - |   |
|     Construction and Land                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Development                          |   |   | 1,395 |   |   |   | 1,395 |   |   |   | - |   |   |   | 1,141 |   |   |   | 1,406 |   |   |   | - |   |
|    Commercial and Industrial                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Consumer and Other                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded:                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     1-4 Residential Prime                                  |   | $ | 1,351 |   |   | $ | 1,950 |   |   | $ | 599 |   |   | $ | - |   |   | $ | 1,311 |   |   | $ | 23 |   |
|     1-4 Residential Subprime (2)                           |   |   | 492 |   |   |   | 556 |   |   |   | 64 |   |   |   | 86 |   |   |   | 492 |   |   |   | - |   |
|     Multi Family Residential                               |   |   | 728 |   |   |   | 817 |   |   |   | 89 |   |   |   | - |   |   |   | 677 |   |   |   | 14 |   |
|     Commercial Real Estate                                 |   |   | 2,948 |   |   |   | 3,167 |   |   |   | 219 |   |   |   | - |   |   |   | 2,811 |   |   |   | - |   |
|     Construction and Land                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 14 |   |
|        Development                          |   |   | 2,055 |   |   |   | 2,654 |   |   |   | 599 |   |   |   | 195 |   |   |   | 2,052 |   |   |   | - |   |
|    Commercial and Industrial                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Consumer and Other                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     1-4 Residential Prime                                  |   | $ | 2,570 |   |   | $ | 3,170 |   |   | $ | 600 |   |   | $ | 367 |   |   | $ | 2,527 |   |   | $ | 23 |   |
|     1-4 Residential Subprime (2)                           |   |   | 805 |   |   |   | 869 |   |   |   | 64 |   |   |   | 327 |   |   |   | 805 |   |   |   | - |   |
|     Multi Family Residential                               |   |   | 728 |   |   |   | 817 |   |   |   | 89 |   |   |   | - |   |   |   | 677 |   |   |   | 14 |   |
|     Commercial Real Estate                                 |   |   | 9,221 |   |   |   | 9,440 |   |   |   | 219 |   |   |   | 1,018 |   |   |   | 9,210 |   |   |   | - |   |
|     Construction and Land                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 14 |   |
|        Development                          |   |   | 3,450 |   |   |   | 4,048 |   |   |   | 598 |   |   |   | 1,336 |   |   |   | 3,458 |   |   |   | - |   |
|    Commercial and Industrial                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Consumer and Other                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|             Total: |   | $ | 16,774 |   |   | $ | 18,344 |   |   | $ | 1,570 |   |   | $ | 3,048 |   |   | $ | 16,677 |   |   | $ | 51 |   |

----

| Impaired Loans                                                                 |   |
|--------------------------------------------------------------------------------|--------|
| For the Year Ended December 31, 2010                                           |   |
|                                                                           |   | Recorded Investment  (1) |   |   | Unpaid Principal  Balance |   |   | Related  Allowance |   |   | Life to Date Charge offs |   |   | Average Recorded Investment |   |   | Interest Income Recognized |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With no related allowance recorded:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     1-4 Residential Prime                                  |   | $ | 1,904 |   |   | $ | 1,904 |   |   | $ | - |   |   | $ | 832 |   |   | $ | 2,184 |   |   | $ | - |   |
|     1-4 Residential Subprime (2)                           |   |   | 240 |   |   |   | 240 |   |   |   | - |   |   |   | 86 |   |   |   | 261 |   |   |   | - |   |
|     Multi Family Residential                               |   |   | 410 |   |   |   | 410 |   |   |   | - |   |   |   | - |   |   |   | 577 |   |   |   | - |   |
|     Commercial Real Estate                                 |   |   | 5,412 |   |   |   | 5,412 |   |   |   | - |   |   |   | 598 |   |   |   | 5,490 |   |   |   | - |   |
|     Construction and Land                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Development                          |   |   | 1,101 |   |   |   | 1,101 |   |   |   | - |   |   |   | 576 |   |   |   | 1,358 |   |   |   | - |   |
|    Commercial and Industrial                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Consumer and Other                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded:                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     1-4 Residential Prime                                  |   | $ | 1,181 |   |   | $ | 1,851 |   |   | $ | 670 |   |   | $ | - |   |   | $ | 1,693 |   |   | $ | 8 |   |
|     1-4 Residential Subprime (2)                           |   |   | 544 |   |   |   | 683 |   |   |   | 139 |   |   |   | - |   |   |   | 583 |   |   |   | - |   |
|     Multi Family Residential                               |   |   | 1,294 |   |   |   | 1,583 |   |   |   | 289 |   |   |   | 13 |   |   |   | 1,322 |   |   |   | 4 |   |
|     Commercial Real Estate                                 |   |   | 2,324 |   |   |   | 2,850 |   |   |   | 526 |   |   |   | - |   |   |   | 2,240 |   |   |   | - |   |
|     Construction and Land                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 15 |   |
|        Development                          |   |   | 2,530 |   |   |   | 3169 |   |   |   | 639 |   |   |   | 655 |   |   |   | 2,861 |   |   |   | - |   |
|    Commercial and Industrial                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Consumer and Other                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     1-4 Residential Prime                                  |   | $ | 3,085 |   |   | $ | 3,755 |   |   | $ | 670 |   |   | $ | 832 |   |   | $ | 3,877 |   |   | $ | 8 |   |
|     1-4 Residential Subprime (2)                           |   |   | 784 |   |   |   | 923 |   |   |   | 139 |   |   |   | 86 |   |   |   | 844 |   |   |   | - |   |
|     Multi Family Residential                               |   |   | 1,704 |   |   |   | 1,993 |   |   |   | 289 |   |   |   | 13 |   |   |   | 1,899 |   |   |   | 4 |   |
|     Commercial Real Estate                                 |   |   | 7,736 |   |   |   | 8,262 |   |   |   | 526 |   |   |   | 598 |   |   |   | 7,730 |   |   |   | - |   |
|     Construction and Land                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 15 |   |
|        Development                          |   |   | 3,631 |   |   |   | 4,270 |   |   |   | 639 |   |   |   | 1,231 |   |   |   | 4,219 |   |   |   | - |   |
|    Commercial and Industrial                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Consumer and Other                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|             Total: |   | $ | 16,940 |   |   | $ | 19,203 |   |   | $ | 2,263 |   |   | $ | 2,760 |   |   | $ | 18,569 |   |   | $ | 27 |   |

----

|                                                                       |   | March 31, 2011                                             |          |   |                                              |   |
|----------------------------------------------------------------------------|--------|------------------------------------------------------------|---------------|--------|---------------------------------------------------|--------|
|                                                                       |   |   Quoted market pricein active markets (Level 1) |          |   | Significant otherobservable inputs (Level 2) |   |   | Significant unobservableinputs (Level 3) |   |   |     Total |   |
| Available-for-sale investment securities                                   |   |                                                       |          |   |                                              |   |   |   |   |   |   |   |
|     Mortgage backed                                    |   |                                                       |          |   |                                              |   |   |   |   |   |   |   |
|        Government sponsored enterprises |   | $                                                          | -             |   |                                              | $      | 48,594 |   |   | $ | - |   |   | $ | 48,594 |   |
|        Other                            |   |                                                       | -        |   |                                              |   | 1,830 |   |   |   | - |   |   |   | 1,830 |   |
|     Municipals                                         |   |                                                       | -        |   |                                              |   | 12,407 |   |   |   | - |   |   |   | 12,407 |   |
|     Other                                              |   |                                                       |  -  |   |                                              |   | 460 |   |   |   | 1,535 |   |   |   | 1,995 |   |
| Total assets at fair value                                                 |   | $                                                          | -             |   |                                              | $      | 63,291 |   |   | $ | 1,535 |   |   | $ | 64,826 |   |

----

|                                                                       |   |  December 31, 2010                                    |          |   |                                              |   |
|----------------------------------------------------------------------------|--------|------------------------------------------------------------|---------------|--------|---------------------------------------------------|--------|
|                                                                       |   |   Quoted market pricein active markets (Level 1) |          |   | Significant otherobservable inputs (Level 2) |   |   | Significant unobservableinputs (Level 3) |   |   |     Total |   |
| Available-for-sale investment securities                                   |   |                                                       |          |   |                                              |   |   |   |   |   |   |   |
|     Mortgage backed                                    |   |                                                       |          |   |                                              |   |   |   |   |   |   |   |
|        Government sponsored enterprises |   | $                                                          | -             |   |                                              | $      | 56,683 |   |   | $ | - |   |   | $ | 56,683 |   |
|        Other                            |   |                                                       | -        |   |                                              |   | 1,880 |   |   |   | - |   |   |   | 1,880 |   |
|     Municipals                                         |   |                                                       | -        |   |                                              |   | 12,088 |   |   |   | - |   |   |   | 12,088 |   |
|     Other                                              |   |                                                       |  -  |   |                                              |   | 460 |   |   |   | 1,195 |   |   |   | 1,655 |   |
| Total assets at fair value                                                 |   | $                                                          | -             |   |                                              | $      | 71,111 |   |   | $ | 1,195 |   |   | $ | 72,306 |   |

|                                                                                                                              |   | March 31, 2011                                |    |   |                                        |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|---------------------------------------------|--------|
|                                                                                                                              |   | Quoted market pricein active markets(Level 1) |    |   | Significant otherobservable inputs(Level 2) |   |   | Significant unobservableinputs(Level 3) |   |   |   Total |   |
|                                                                                                                              |   |                                          |    |   |                                        |   |   |   |   |   |   |   |
| Impaired Loans                                                                                                                    |   |                                          |    |   |                                        |   |   |   |   |   |   |   |
|    1 - 4 Residential Prime                                                                                         |   | $                                             | -       |   |                                        | $      | - |   |   | $ | 1,219 |   |   | $ | 1,219 |   |
|    1 - 4 Residential Subprime(2)                                                                                   |   |                                          | -       |   |                                        |   | - |   |   |   | 313 |   |   |   | 313 |   |
|    Commercial Real Estate                                                                                          |   |                                          | -       |   |                                        |   | - |   |   |   | 6,273 |   |   |   | 6,273 |   |
|    Construction and Land    Development                                                        |   |                                          |  - |   |                                        |   |  - |   |   |   | 1,395 |   |   |   | 1,395 |   |
| Other Real Estate Owned                                                                                                           |   |                                          |    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial Office Properties                                                                                    |   |                                          | -       |   |                                        |   | - |   |   |   | 1,909 |   |   |   | 1,909 |   |
|    Commercial Lots                                                                                                 |   |                                          | -       |   |                                        |   | - |   |   |   | 1,074 |   |   |   | 1,074 |   |
|    Residential 1 – 4 Family Lots   and Homes Under Construction                               |   |                                          |  - |   |                                        |   |  - |   |   |   | 4,036 |   |   |   | 4,036 |   |
|    Residential 1 – 4 Family Homes                                                                            |   |                                          | -       |   |                                        |   | - |   |   |   | 1,537 |   |   |   | 1,537 |   |
|    Multifamily Properties                                                                                          |   |                                          | -       |   |                                        |   |  - |   |   |   | 989 |   |   |   | 989 |   |
| Total assets at fair value                                                                                                        |   | $                                             | -       |   |                                        | $      | - |   |   | $ | 18,745 |   |   | $ | 18,745 |   |
|                                                                                                                              |   |
| (2) 1 – 4 Family Residential Loans where the borrower has a credit score less than 660 and a debt to income ratio over 50%. |   |

----

|                                                                                                                              |   | December 31, 2010                             |          |   |                                        |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------------|--------|---------------------------------------------|--------|
|                                                                                                                              |   | Quoted market pricein active markets(Level 1) |          |   | Significant otherobservable inputs(Level 2) |   |   | Significant unobservableinputs(Level 3) |   |   |   Total |   |
|                                                                                                                              |   |                                          |          |   |                                        |   |   |   |   |   |   |   |
| Impaired Loans                                                                                                                    |   |                                          |          |   |                                        |   |   |   |   |   |   |   |
|    1 - 4 Residential Prime                                                                                         |   | $                                             | -             |   |                                        | $      | - |   |   | $ | 1,904 |   |   | $ | 1,904 |   |
|    1 - 4 Residential Subprime(2)                                                                                   |   |                                          | -             |   |                                        |   | - |   |   |   | 240 |   |   |   | 240 |   |
|    Multifamily Residential                                                                                         |   |                                          | -             |   |                                        |   | - |   |   |   | 410 |   |   |   | 410 |   |
|    Commercial Real Estate                                                                                          |   |                                          | -             |   |                                        |   | - |   |   |   | 5,412 |   |   |   | 5,412 |   |
|    Construction and Land    Development                                                        |   |                                          | -             |   |                                        |   |  - |   |   |   | 1,101 |   |   |   | 1,101 |   |
| Other Real Estate Owned                                                                                                           |   |                                          |          |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial Office Properties                                                                                    |   |                                          | -             |   |                                        |   | - |   |   |   | 1,917 |   |   |   | 1,917 |   |
|    Commercial Lots                                                                                                 |   |                                          | -             |   |                                        |   | - |   |   |   | 908 |   |   |   | 908 |   |
|    Residential 1 – 4 Family Lots   and Homes Under Construction                               |   |                                          | -             |   |                                        |   |  - |   |   |   | 4,256 |   |   |   | 4,256 |   |
|    Residential 1 – 4 Family Homes                                                                            |   |                                          | -             |   |                                        |   | - |   |   |   | 1,622 |   |   |   | 1,622 |   |
|    Multifamily Properties                                                                                          |   |                                          |  -  |   |                                        |   |  - |   |   |   | 220 |   |   |   | 220 |   |
| Total assets at fair value                                                                                                        |   | $                                             |  -       |   |                                        | $      | - |   |   | $ | 17,990 |   |   | $ | 17,990 |   |
|                                                                                                                              |   |
| (2) 1 – 4 Family Residential Loans where the borrower has a credit score less than 660 and a debt to income ratio over 50%. |   |

|                                                             |   | March 31,   |      |
|------------------------------------------------------------------|--------|------------------|-----------|
|                                                             |   |  2011  |      |   | 2010  |   |
| Beginning of Year Balance                                        |   | $                | 1,195     |   |   | $ | 2,901 |   |
| Discount Accretion                                               |   |             | 2         |   |   |   | 2 |   |
| Principal Paydowns                                               |   |             | -         |   |   |   | (7 | ) |
| Other-than-temporary impairment on available for sale securities |   |             | (176      | ) |   |   | - |   |
| Unrealized Gain (Loss)                                           |   |             |  514 |   |   |   | (1,864 | ) |
| Ending Balance                                                   |   | $                | 1,535     |   |   | $ | 1,032 |   |

----

|  Mortgage loans held for sale are carried at the lower of cost or market value.  The fair value of mortgage loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics.  As such, the Company categorizes loans subjected to nonrecurring fair value adjustments as Level 2.  There were no fair value adjustments to mortgage loans held for sale as of March 31, 2011 and December 31, 2010. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The following is a description of the valuation methodologies used for assets and liabilities that are not recorded at fair value, but whose fair value must be estimated and disclosed: |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The carrying amount of variable rate borrowings and securities sold under repurchase agreements approximates fair value.  The fair value of fixed rate other borrowings is estimated based on discounted contractual cash flows using the current incremental borrowing rates for similar type borrowing arrangements. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   | March 31, |    |   | December 31, |   |
|--------------------------------------|--------|-----------|---------|--------|--------------|--------|
|                                 |   | 2011      |    |   | 2010         |   |
|                                 |   | Carrying  |    |   | Fair         |   |   | Carrying |   |   | Fair |   |
|                                 |   | Amount    |    |   | Value        |   |   | Amount |   |   | Value |   |
| Financial assets:                    |   |      |    |   |         |   |   |   |   |   |   |   |
| Cash and due from banks              |   | $         | 26,667  |   |         | $      | 26,667 |   |   | $ | 20,062 |   |   | $ | 20,062 |   |
| Federal funds sold                   |   |      | 2,823   |   |         |   | 2,823 |   |   |   | - |   |   |   | - |   |
| Investment securities                |   |      | 64,826  |   |         |   | 64,826 |   |   |   | 72,306 |   |   |   | 72,306 |   |
| Loans held for sale                  |   |      | -       |   |         |   | - |   |   |   | 417 |   |   |   | 417 |   |
| Loans, net                           |   |      | 322,033 |   |         |   | 320,523 |   |   |   | 336,449 |   |   |   | 335,818 |   |
| Other Real Estate Owned, net         |   |      | 9,545   |   |         |   | 9,545 |   |   |   | 8,923 |   |   |   | 8,923 |   |
| Financial liabilities:               |   |      |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                             |   |      | 351,993 |   |         |   | 342,348 |   |   |   | 344,602 |   |   |   | 344,602 |   |
| Short term borrowings                |   |      | 6,580   |   |         |   | 6,580 |   |   |   | 3,963 |   |   |   | 3,963 |   |
| Advances from Federal Home Loan Bank |   |      | 57,000  |   |         |   | 52,336 |   |   |   | 69,000 |   |   |   | 63,682 |   |
| Junior subordinated debentures       |   |      | 10,310  |   |         |   | 10,310 |   |   |   | 10,310 |   |   |   | 10,310 |   |

----

----

----

|                                                                                                   |   | For the three months ended |        |   | For the three months ended |   |
|--------------------------------------------------------------------------------------------------------|--------|----------------------------|-------------|--------|----------------------------|--------|
|                                                                                                   |   | March 31, 2011             |        |   | March 31, 2010             |   |
|                                                                                                   |   | Average                    |        |   | Income/                    |   |   | Yield/ |   |   | Average |   |   | Income/ |   |   | Yield/ |   |
|                                                                                                   |   | Balance                    |        |   | Expense                    |   |   | Rate(1) |   |   | Balance |   |   | Expense |   |   | Rate(1) |   |
| Assets                                                                                                 |   |                       |        |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Federal funds sold                                                                            |   | $                          | 13,669,552  |   |                       | $      | 6,947 |   |   |   | 0.21 | % |   | $ | 15,824,444 |   |   | $ | 13,719 |   |   |   | 0.35 | % |
| Investments – taxable                                                                            |   |                       | 58,414,755  |   |                       |   | 389,173 |   |   |   | 2.70 |   |   |   | 74,601,709 |   |   |   | 608,225 |   |   |   | 3.31 |   |
| Investments - nontaxable (2)                                                                           |   |                       | 12,262,647  |   |                       |   | 191,958 |   |   |   | 6.35 |   |   |   | 7,402,557 |   |   |   | 123,886 |   |   |   | 6.79 |   |
| Total investments and                                                                                  |   |                       |        |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| federal funds sold                                                                                     |   |                       | 84,346,954  |   |                       |   | 588,078 |   |   |   | 2.83 |   |   |   | 97,828,710 |   |   |   | 745,830 |   |   |   | 3.09 |   |
| Loans (3) (4)                                                                                          |   |                       | 314,475,859 |   |                       |   | 4,490,880 |   |   |   | 5.76 |   |   |   | 329,117,297 |   |   |   | 4,774,123 |   |   |   | 5.86 |   |
| Total earning assets/           interest income |   |                       | 398,822,813 |   |                       |   | 5,078,958 |   |   |   | 5.14 | % |   |   | 426,946,007 |   |   |   |  5,519,953 |   |   |   |  5.22 | % |
| Other assets                                                                                           |   |                       | 71,348,975  |   |                       |   |   |   |   |   |   |   |   |   | 83,180,296 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                           |   | $                          | 470,171,788 |   |                       |   |   |   |   |   |   |   |   | $ | 510,126,303 |   |   |   |   |   |   |   |   |   |
| Liabilities                                                                                            |   |                       |        |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings and                                                                                            |   |                       |        |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| transaction accounts                                                                                   |   | $                          | 95,383,599  |   |                       |   | 304,687 |   |   |   | 1.30 | % |   | $ | 76,533,228 |   |   |   | 309,019 |   |   |   | 1.64 | % |
| Time deposits                                                                                          |   |                       | 220,032,181 |   |                       |   | 848,331 |   |   |   | 1.56 |   |   |   | 260,396,950 |   |   |   | 1,337,654 |   |   |   | 2.08 |   |
| Other borrowings                                                                                       |   |                       | 66,448,858  |   |                       |   | 578,596 |   |   |   | 3.53 |   |   |   | 84,252,222 |   |   |   | 788,270 |   |   |   | 3.79 |   |
| Subordinated debt                                                                                      |   |                       | 10,310,000  |   |                       |   | 45,073 |   |   |   | 1.77 |   |   |   | 10,310,000 |   |   |   | 158,509 |   |   |   | 6.24 |   |
| Total interest bearing                                                                                 |   |                       |        |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   liabilities/interest expense                                                               |   |                       | 392,174,638 |   |                       |   | 1,776,687 |   |   |   | 1.84 |   |   |   | 431,492,400 |   |   |   | 2,593,452 |   |   |   | 2.44 |   |
| Non-interest bearing                                                                                   |   |                       |        |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| liabilities                                                                                            |   |                       | 32,117,491  |   |                       |   |   |   |   |   |   |   |   |   | 33,082,779 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                      |   |                       | 424,292,129 |   |                       |   | 1,776,687 |   |   |   | 1.70 |   |   |   | 464,575,179 |   |   |   | 2,593,452 |   |   |   | 2.26 |   |
| Equity                                                                                                 |   |                       | 45,879,659  |   |                       |   |   |   |   |   |   |   |   |   | 45,551,124 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                      |   |                       |        |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and equity                                                                                             |   | $                          | 470,171,788 |   |                       |   |   |   |   |   |   |   |   | $ | 510,126,303 |   |   |   |   |   |   |   |   |   |
| Net interest                                                                                           |   |                       |        |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income/margin (5)                                                                                      |   |                       |        |   |                       | $      | 3,302,271 |   |   |   | 3.27 | % |   |   |   |   |   | $ | 2,926,501 |   |   |   | 2.72 | % |
| Net interest spread (6)                                                                                |   |                       |        |   |                       |   |   |   |   |   | 3.30 | % |   |   |   |   |   |   |   |   |   |   | 2.78 | % |

| (1)   | Annualized |
|-----------------|------------|

| (2)   | Tax equivalent yields for nontaxable investments assuming a 36% tax rate. |
|-----------------|---------------------------------------------------------------------------|

| (3)   | Does not include nonaccruing loans. |
|-----------------|-------------------------------------|

| (4)   | Income includes loan fees of $193,335 in 2011 and $128,291 in 2010. |
|-----------------|---------------------------------------------------------------------|

| (5)   | Net interest income divided by total earning assets. |
|-----------------|------------------------------------------------------|

| (6)   | Total interest earning assets yield less interest bearing liabilities rate. |
|-----------------|-----------------------------------------------------------------------------|

----

|                                     |   | Analysis of Changes in Net Interest Income        |     |
|------------------------------------------|--------|---------------------------------------------------|----------|
|                                     |   | For the three months ended March 31, 2011         |     |
|                                     |   | Versus three months ended March 31, 2010 (1) |     |
|                                     |   | Volume                                            |     |   | Rate |   |   | Net Change |   |
| Interest income:                         |   |                                              |     |   |   |   |   |   |   |
|                                     |   |                                              |     |   |   |   |   |   |   |
| Cash and Federal funds sold              |   | $                                                 | (1,868   | ) |   | $ | (4,904 | ) |   | $ | (6,772 | ) |
| Investments - taxable                    |   |                                              | (131,972 | ) |   |   | (87,080 | ) |   |   | (219,052 | ) |
| Investments - non taxable (2)            |   |                                              | 81,336   |   |   |   | (13,264 | ) |   |   | 68,072 |   |
| Total investments and federal funds sold |   |                                              | (52,504  | ) |   |   | (105,248 | ) |   |   | (157,752 | ) |
| Net loans (3)                            |   |                                              | (211,381 | ) |   |   | (71,862 | ) |   |   | (283,243 | ) |
| Total interest income                    |   |                                              | (263,885 | ) |   |   | (177,110 | ) |   |   | (440,995 | ) |
| Interest expense:                        |   |                                              |     |   |   |   |   |   |   |   |   |   |
| Savings and transaction accounts         |   |                                              | 76,112   |   |   |   | (80,444 | ) |   |   | (4,332 | ) |
| Time deposits                            |   |                                              | (207,353 | ) |   |   | (281,970 | ) |   |   | (489,323 | ) |
| Other borrowings                         |   |                                              | (166,570 | ) |   |   | (43,104 | ) |   |   | (209,674 | ) |
| Subordinated debt                        |   |                                              |  -  |   |   |   | (113,436 | ) |   |   |  (113,436 | ) |
| Total interest expense                   |   |                                              | (297,811 | ) |   |   | (518,954 | ) |   |   | (816,765 | ) |
| Net interest income                      |   | $                                                 | 33,926   |   |   | $ | 341,844 |   |   | $ | 375,770 |   |

| (1)   | Changes in rate/volume have been allocated on a consistent basis to rate. |
|-----------------|---------------------------------------------------------------------------|

| (2)   | Tax equivalent yields for nontaxable investments assuming a 36% tax rate. |
|-----------------|---------------------------------------------------------------------------|

| (3)   | Income includes loan fees of $193,335 in 2011 and $128,291 in 2010. |
|-----------------|---------------------------------------------------------------------|

----

----

| Maturity       |   | Rate   |   | Balance |   |
|----------------|--------|-------------|--------|---------|--------|
| November 2011  |   |        | 0.36   | %       |   | $ | 5,000,000 |   |
| September 2013 |   |        | 4.75   | %       |   |   | 10,000,000 |   |
| June 2014      |   |        | 3.92   | %       |   |   | 2,000,000 |   |
| October 2016   |   |        | 4.25   | %       |   |   | 5,000,000 |   |
| November 2016  |   |        | 4.08   | %       |   |   | 5,000,000 |   |
| January 2017   |   |        | 4.35   | %       |   |   | 5,000,000 |   |
| January 2017   |   |        | 4.40   | %       |   |   | 5,000,000 |   |
| January 2017   |   |        | 4.46   | %       |   |   | 5,000,000 |   |
| January 2017   |   |        | 4.60   | %       |   |   | 5,000,000 |   |
| March 2018     |   |        | 2.33   | %       |   |   | 5,000,000 |   |
| April 2018     |   |        | 3.03   | %       |   |   | 5,000,000 |   |
|           |   |        |   |    |   |   |   |   |
| Balance        |   |        |   |    |   | $ | 57,000,000 |   |

----

|                   |   | Capital Ratios |   |
|------------------------|--------|----------------|--------|
|                   |   |           |   |   | Well Capitalized |   |   | Adequately Capitalized |   |
|                   |   | Actual         |   |   | Requirement |   |   | Requirement |   |
| (Dollars in thousands) |   | Amount         |   |   | Ratio |   |   | Amount |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| The Bank               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Total capital (to risk-weighted assets)  |   |   | 50,839 |   |   |   | 14.85  | %      |   |   | 34,230 |   |   |   | 10.00  | %      |   |   | 27,384 |   |   |   | 8.00   | %      |
|------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Tier 1 capital (to risk-weighted assets) |   |   | 46,436 |   |   |   | 13.57  | %      |   |   | 20,538 |   |   |   | 6.00   | %      |   |   | 13,692 |   |   |   | 4.00   | %      |
| Tier 1 capital (to average assets)       |   |   | 46,436 |   |   |   | 10.09  | %      |   |   | 23,189 |   |   |   | 5.00   | %      |   |   | 18,551 |   |   |   | 4.00   | %      |
| The Company                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total capital (to risk-weighted assets)  |   |   | 57,449 |   |   |   | 16.55  | %      |   |   | N/A    |   |   |   | N/A    |   |   |   | 27,777 |   |   |   | 8.00   | %      |
| Tier 1 capital (to risk-weighted assets) |   |   | 52,986 |   |   |   | 15.26  | %      |   |   | N/A    |   |   |   | N/A    |   |   |   | 13,889 |   |   |   | 4.00   | %      |
| Tier 1 capital (to average assets)  |   |   | 52,986 |   |   |   | 11.39  | %      |   |   | N/A    |   |   |   | N/A    |   |   |   | 18,607 |   |   |   | 4.00   | %      |

----

|                                             |   |  Within OneMonth |      |   | After OneThroughThreeMonths |   |      | After ThreeThroughTwelveMonths |   |   |  Within OneYear |   |   | GreaterThanOne Year |       |   |   Total |   |
|--------------------------------------------------|--------|-----------------------|-----------|--------|-----------------------------|--------|-----------|--------------------------------|--------|--------|----------------------|--------|--------|---------------------|------------|--------|-------------------|--------|
| Unused commitments to    extend credit |   | $                     | 1,242,604 |   |                        | $      | 1,443,484 |                           |   | $      | 7,092,334            |   |   | $                   | 9,778,422  |   |              | $      | 9,158,476 |   |   | $ | 18,936,898 |   |
| Standby letters of credit                        |   |                  | 114,829   |   |                        |   | -         |                           |   |   | 486,260              |   |   |                | 601,089    |   |              |   |  - |   |   |   | 601,089 |   |
| Totals                                           |   | $                     | 1,357,433 |   |                        | $      | 1,443,484 |                           |   | $      | 7,578,594            |   |   | $                   | 10,379,511 |   |              | $      | 9,158,476 |   |   | $ | 19,537,987 |   |
|                                             |   |                  |      |   |                        |   |      |                           |   |   |                 |   |   |                |       |   |              |   |   |   |   |   |   |   |

----

| Date:           May 12, 2011 | By:    | s/L. Wayne Pearson  |
|-------------------------------------------------------------------------------------|--------|--------------------------|
|                                                                                |   | L. Wayne Pearson         |
|                                                                                |   | Chief Executive Officer  |

| Date:           May 12, 2011 | By:    | s/William C. Heslop  |
|-------------------------------------------------------------------------------------|--------|---------------------------|
|                                                                                |   | William C. Heslop         |
|                                                                                |   | Chief Financial Officer   |

----

| 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|------|-----------------------------------------------------------------------------------------------------|

| 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|------|-----------------------------------------------------------------------------------------------------|

| 32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  This exhibit is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 but is instead furnished as provided by applicable rules of the Securities and Exchange Commission. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----